Zara Reflection

Even though Zara has no problem with POS system itself at its current status, the innovations will require Zara to upgrade it. After the presentation of our consultants, I feel that for a fast growing company like Zara, I would recommend to improve their system now, rather than waiting until they actually face a problem. I would recommend this investment by explaining the possible future risks and what can happen if Zara would have to switch out their technology at last minute. I believe ZARA will be able to achieve improvement with new technology. For example, this change will allow for online sites and create better and faster inventory updates. It will also connect all of ZARA’s chain stores, in which some of the benefits will allow Zara to better manage and predict demand on each branch.

                 If Zara wants to implement a new Enhanced POS system to get a better idea of how long it will take and how costly it will be. The consultant estimated €233,000 in initial costs to get new system and it will take one year. Investing in new Enhanced POS system; will make us more money in the long run because we would be using less man-hour. Also as mentioned by the consultants, reports would be run more often to create optimal plans to begin production, as well as have a faster system with more functionality.

The implementation of new system will not be quick and smooth but if Zara does not want to find itself stuck in a situation where new stores cannot be opened due to its current POS manufacture terminating production, this will have to be done. As long as ZARA can adapt to this technology the way they want, they may be able to keep their tradition of person to person interaction with customers, and at the same time, be more efficient at helping and getting them what they want.